Milwaukee County

McGee planned citywide shakedown

Closing arguments today in ex-alderman’s extortion trial

For complete archived coverage of the case against former Milwaukee Ald. Michael McGee,CLICK HERE

After surviving a recall election in April 2004, Milwaukee Ald. Michael McGee moved quickly to expand his power over liquor licenses throughout the city, according to 19 wiretap recordings played in federal court Monday.

“I need bread,�? he said in one call with a business owner.

McGee moved onto the powerful Licenses Committee in early 2007 and told his assistant he needed the mailing address of every liquor license in the city, about 1,400 in all, according to the tapes. McGee was planning to have owners come to a fund-raiser, according to earlier testimony.

“They all got to give. If they don’t, it’s done, straight up,�? McGee told a subordinate on one call, adding he was forming a “kick ass committee.�?

The prosecution concluded its case Monday and played a series of intercepted calls, recorded by the FBI in April and May of last year. McGee was arrested on Memorial Day 2007.

The defense then put on three witnesses, including former acting mayor Marvin Pratt, highlighting a gun buyback and other initiatives by McGee when he was in office. The former alderman, who was defeated in April, did not testify. Closing arguments and jury instructions are set for today.

McGee, 38, is charged with extortion, bribery and failing to file forms on a $15,000 wire transaction. In six days, the government put on more than two dozen witnesses, including several business owners who testified that McGee used his power over their licenses to solicit bribes.

In March of last year, a federal wiretap was authorized to monitor McGee’s phone calls. A week or so later, McGee won a recall election, and the tapes played in court Monday pick up from there.

Rent money

McGee boasts to several people that Common Council President Willie L. Hines, Jr. was putting him on the Licenses Committee. At first McGee said he didn’t want the assignment because of the long meetings, but then he realized the power that went with it, he says in one call.

Dennis Walton, who collected bribes for McGee, according to the government, told the alderman he was “going to be god to a whole bunch of (expletive).�?

“That is the power. That is the power piece . . . that is the gangsta committee,�? said Walton, who is being sought by the FBI for questioning in connection with the case.

In a series of calls, McGee seeks money from Derrick Avery, the owner of a club in the 6th District called Marjani’s. McGee helped Avery get a special hearing on a liquor license for the club that’s on N. King Drive, according to testimony last week from a City Hall official.

McGee tells Avery he needs money because his apartment costs $1,500 a month.

Avery, who was in Las Vegas at the time, offers to fly McGee there, and says, “I’ll be shaking your hand with something beautiful,�? according to the call.

In making out a check, Avery asks McGee if he prefers Mike or Michael. McGee says either is fine, adding “it could be thug Mike.�?

McGee and Avery talk about a deal involving renovating homes in Milwaukee and bringing a band from Milwaukee to Las Vegas.

At one point, Avery tells McGee, “I can talk on this line.�? Avery says he put $20,000 in another person’s account, to which McGee says he needs “10 or 15 at least.�? Avery later asks if McGee will support a license for him to hold a block party outside his club.

‘Time of need’

Avery tells McGee it would be best for him to put money directly into a Wells Fargo account, but McGee says he doesn’t have one. Avery puts $1,000 in the account of a woman McGee apparently didn’t know, according to a call.

The money went into the woman’s account and was withdrawn the same day, according to bank records brought in as evidence.

McGee calls the woman, introduces himself as “your alderman,�? and tells her, “Thanks for looking out for me in my time of need,�? according to the call.

A financial investigator working for the U.S. attorney’s office testified that checks for cash were repeatedly written off accounts of McGee and his organizations.

Jeff Mesarich, a former IRS agent who is part of the prosecution’s investigation, said his research showed McGee’s Rapid Response Team account was constantly tapped for checks written out to cash. The team was supposed to act as a kind of police force in dangerous neighborhoods.

Brief defense

The defense called William Arnold, public relations manager for the Common Council, who said he issued news releases for McGee about a gun buyback, cruising at Miller Park, weeds on vacant lots and rewards for arrests in high-profile crimes.

On cross-examination, Arnold said he didn’t know if McGee himself posted any of the reward money. He also said one of the main contributors to a reward was Adel “Jack�? Kheirieh, a onetime confidant of McGee’s who became an FBI informant. Kheirieh testified that he went to authorities because McGee was shaking him down so often for money.

Also testifying for the defense was Pratt, a former member of the Common Council who served as acting mayor for four months in 2004.

Pratt, now a lobbyist, said he had worked for two of the business owners who earlier testified that McGee extorted or tried to extort money from them. Pratt asked McGee about a proposal by one of the men, Anup “Andy�? Khullar, while McGee was in jail. Pratt didn’t say what McGee’s position was on Khullar’s deal, but added that his assistant said the alderman was opposed.

On cross-examination, Pratt said it was not allowable for an alderman to accept money to take a position before a committee or to extort a business to offer rewards.

About John Diedrich

John Diedrich writes about crime, federal issues, ultimate fighting and guns. His investigations have been honored with various national awards including a George Polk Award for reporting on rogue gun stores and an IRE award for exposing botched undercover federal stings.